DGTR Recommends Up to 30% Anti-Dumping Duties on Chinese Solar Cells

The Directorate General of Trade Remedies (DGTR) has recommended imposing anti-dumping duties of up to 30% on imports of solar cells and modules from China. The recommendation follows an investigation into allegations that cheap solar cells were being dumped in India, harming the domestic industry.

The trade watchdog has suggested that the anti-dumping duty be imposed for a period of three years on “solar cells whether or not assembled in modules or made up into panels” originating in or exported from China PR. The agency concluded that these imports were entering India below their normal value, causing material injury to domestic solar manufacturers.

What Triggered the Case

The DGTR’s final recommendation stems from complaints filed by First Solar India and Jupiter International, which represented the domestic industry in the case. According to the DGTR’s findings, imports from China rose by nearly 240% during the investigation period (April 1, 2023 to March 31, 2024), accounting for 77% of total imports.

The trade regulator also found that prices of these imports dropped sharply, leading to significant price undercutting of Indian producers, particularly in the case of mono-crystalline cells.

The DGTR further recommended that solar cells and solar modules be treated as a single product for trade remedies, since solar cells have no independent use outside of modules.

DGTR Recommendations

In its recommendation, DGTR stated: “Having initiated and conducted the investigation in terms of the provisions under the Anti-Dumping Rules, the Authority is of the view that imposition of anti-dumping duty is required to offset dumping and injury. Accordingly, the Authority recommends imposition of anti-dumping duties on imports of the product under consideration from the subject countries.”

It further added: “The Authority recommends imposition of anti-dumping duty equal to the lesser of the margin of dumping and the margin of injury so as to remove the injury to the domestic industry. Accordingly, the Authority recommends imposition of definitive anti-dumping duty on the imports of subject goods originating in or exported from the subject countries, for a period of three years, from the date of notification to be issued in this regard by the Central Government, as a percentage of the CIF value of the goods as indicated in Column 7 below.”

What Follows Next

As per the procedure, the Union government will look into the recommendations submitted by DGTR on the matter and take its next course of action. As per the trend, the government is likely to publish a notification in this regard and put into effect the anti-dumping duties against the cheap solar cell imports in the country. This will ensure the solar module makers in the country, who were reaping the benefits of cheap solar cells, destined for the non-ALMM and non-DCR market, will get a jolt with the decision. At the same time, this will pave the way for the domestic solar cell makers like First Solar, Jupiter International and others who were parties in the case.  

The Solar Protection In India 

In India, the solar industry is currently enjoying strong government support for its growth. The government has encouraged domestic expansion through tariff measures such as Basic Customs Duty and Anti-Dumping Duties (on several solar components), while non-tariff measures like the ALMM and DCR mandates have effectively restricted Chinese solar module and cell companies from participating in government and government-sponsored projects.

Solar module imports from China already face steep customs duties and cannot significantly penetrate the Indian market due to the ALMM and DCR mandates. Meanwhile, petitions before the DGTR have also resulted in additional protection and duties on imports of items such as solar glass and aluminium frames. A new case has now been filed seeking anti-dumping duties on encapsulants as well.

With the rise of such petitions, domestic players are increasingly able to shield themselves from cheap global prices—particularly from China—while simultaneously boosting opportunities within the domestic market.